SFE To Launch New Dow Jones AP/ELS Futures And Options Contracts

The Sydney Futures Exchange (SFE) is set to launch new equity index derivative products based on 35 of the largest, most liquid companies on the Australian stock market - the Dow Jones Asia Pacific Extra Liquid Series (AP/ELS) Australia futures and options contracts. AP/ELS Australia futures and options contracts will begin trading at 9.50am on Monday, 13 September, and will be the first products to debut on SFE's advanced around the clock electronic trading platform, SYCOM® IV. Users of the AP/ELS Australia futures and options contracts, such as fund managers, arbitrageurs and private investors, will be able to gain exposure to the Australian equity market quickly and efficiently. SFE's new futures and options contracts are based on the AP/ELS indices launched on 27 July 1999 by Dow Jones Indexes, one of the world's premier global index providers. The Dow Jones AP/ELS Australia index comprises 35 blue-chip industrial, financial and commodity stocks, representing a capitalisation in excess of A$340 billion, and accounting for approximately 72% of Australia's top-100 listed companies. AP/ELS Australia futures and options contracts are the first in a series of index-linked products based on stock markets within the Asia Pacific region. Futures and options trading on the Dow Jones AP/ELS Hong Kong and Japan indices is scheduled to begin at SFE in early 2000. Mr Leslie Hosking, SFE Chief Executive, said: "AP/ELS Australia futures and options contracts underline SFE's position as the gateway for price risk management in the Asia Pacific. SFE is the only exchange in the region, stock or futures, with the ability to place trading terminals in the USA. Subject to regulatory approval, investors in New York and Chicago will be able to access AP/ELS products via SYCOM® IV screens located in the USA and gain exposure through SFE to the Asia Pacific region. "Market participants can use the new AP/ELS Australia derivatives to gain 'synthetic' exposure to the Australian equity market, minimise the impact of market fluctuations, manage cash flows into and out of funds, hedge portfolio risks or simply speculate on the direction of the market." David Moran, President of Dow Jones Indexes, said: "The launch of SFE's futures and options contracts based on the Dow Jones AP/ELS Australia index, adds to the suite of index-linked investments and price risk management products available to the retail and institutional customer seeking exposure to the Australian marketplace. "It has been the strategy of Dow Jones Indexes to form alliances with the world's leading exchanges. We anticipate that SFE and its Members will build liquidity in the futures and options contracts based on the AP/ELS indexes, allowing them to achieve the same level of success as is currently enjoyed by derivatives contracts based on the Dow Jones STOXX 50 and Dow Jones EURO STOXX 50 indexes in Europe. We are very enthusiastic about our affiliation with SFE and look forward to a long and prosperous relationship." AP/ELS Australia futures and options contracts will complement SFE's existing Share Price Index (SPI®) and individual share futures equity products. SPI® market participants may migrate to the AP/ELS Australia product and new strategies are likely to be developed between the SPI® and AP/ELS Australia, allowing investors to expand their risk management portfolio. SFE is the largest financial futures and options exchange in the Asia Pacific, offering around the clock trading access to over 70 derivatives products across the equity, interest rate and commodity spectrums. Via its SYCOM® IV electronic trading platform, SFE has a global product distribution network that includes the USA, UK, Japan, Hong Kong and New Zealand.